Why do some say that defense and oil stocks are always the safe bet if market is in trouble?

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Why do some say that defense and oil stocks are always the safe bet if market is in trouble?

Also they include drug stocks in there as well.

Why are these safe? What is their reasoning?

2007-03-01 01:29:12 · 3 answers · asked by Charles R 1 in Business & Finance ➔ Investing

3 answers

Because the government pumps millions upon millions of dollars in these industries year after year.

2007-03-01 02:50:52 · answer #1 · answered by ropman1 4 · 0⤊ 0⤋

People will always drive cars and governments and terrorists will always buy armaments. And we all know how nuch profit the drug companies make. Shabby little world, is'nt it?

2007-03-01 17:04:49 · answer #2 · answered by fred35 6 · 0⤊ 0⤋

Quite likely because they want to sell theirs but want the price to go up first. Hence they give that advice.

2007-03-01 09:40:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋